This document provides an overview and summary of updates from the Financial Accounting Standards Board (FASB) regarding accounting standards on topics such as goodwill impairment testing, presentation of comprehensive income, and fair value measurement to achieve convergence with International Financial Reporting Standards (IFRS). The updates aim to improve financial reporting consistency, comparability, and transparency. Key provisions modify goodwill impairment testing for reporting units with zero/negative carrying amounts and require entities to present comprehensive income in one continuous statement or two consecutive statements.
This document outlines an agenda for a seminar on financial and project management systems for government contractors. The agenda covers regulatory requirements, business systems, cost accounting practices, types of government contracts, and audits. It discusses key regulations like the Federal Acquisition Regulation and Cost Accounting Standards, and how compliance is important for contractors. Contractors must establish and maintain acceptable business systems under the regulatory framework.
This document contains slides from a presentation on accounting for business combinations according to IFRS. It discusses major changes to accounting standards, the goodwill impairment test, reporting of acquisition expenses, use of pro forma statements, and valuation of assets and liabilities in a business combination. The slides cover learning objectives related to FASB changes to business combination accounting, goodwill impairment assessment, reporting acquisition expenses, use of pro forma statements, and valuation of assets and liabilities acquired in a business combination.
Point of view: The financial reporting framework - Could changes to the not-f...PwC
The document discusses potential changes to financial reporting standards that may impact both non-profit and for-profit entities. The FASB has proposed changes to non-profit financial reporting and has research projects underway on for-profit performance reporting and cash flows. The changes to non-profit standards may influence the direction of the for-profit projects. For-profit entities are encouraged to comment on areas of the non-profit proposal that intersect with the for-profit research to help the FASB maintain consistency across reporting models.
Presentation from Ohio CPA Firm, Rea & Associates on AP and Contracts Payable for Ohio Businesses. Topics discussed include ORC requirements, Compling AP and contracts payable for GAAP financial statements, Internal Controls over AP, and common audit deficiences in AP.
1. The document outlines the conceptual framework for financial reporting established by the FASB. The framework consists of three levels: the objective of financial reporting, fundamental qualitative characteristics and elements, and concepts for recognition, measurement, and disclosure.
2. It describes the key components of each level, including the basic objective to provide useful information to investors and creditors, qualitative characteristics like relevance and faithful representation, and defined elements like assets, liabilities, and equity.
3. Basic assumptions and principles are also discussed, such as the monetary unit and historical cost assumptions, as well as the revenue and expense recognition principles. An exception for the cost constraint is noted.
The document summarizes changes to estate laws in 2011 and 2012. Key points include:
- The federal estate tax exemption was $5 million in 2011 and increased to $5.12 million in 2012. Tennessee's exemption remained at $1 million.
- The federal estate and gift tax rate was 35% in 2011-2012. Tennessee's maximum rate is 9.5%.
- Portability between spouses was extended, allowing married couples to shield up to $10 million from federal estate taxes. Tennessee does not recognize portability.
- Other changes included the gift tax annual exclusion amount and generation-skipping tax exemption and rates.
This document provides information about Ram Naresh Financial Consultancy Private Limited, including its corporate office address and contact details. It lists the directors and their details such as name, address, designation, and date of appointment. It also provides contact information for Ram Financial Network's customer support.
- Each interface must belong to a different network, two interfaces can be configured to belong to the same network but only ONE will be ACTIVE.
- If two interfaces are configured with IP addresses from the same network, the message "192.168.1.0 overlaps with FastEthernet0/0" will appear.
- If an interface is attempted to be enabled, the message "172.16.0.0 overlaps with FastEthernet0/0" will appear, indicating incorrect IP address assignment.
This document outlines an agenda for a seminar on financial and project management systems for government contractors. The agenda covers regulatory requirements, business systems, cost accounting practices, types of government contracts, and audits. It discusses key regulations like the Federal Acquisition Regulation and Cost Accounting Standards, and how compliance is important for contractors. Contractors must establish and maintain acceptable business systems under the regulatory framework.
This document contains slides from a presentation on accounting for business combinations according to IFRS. It discusses major changes to accounting standards, the goodwill impairment test, reporting of acquisition expenses, use of pro forma statements, and valuation of assets and liabilities in a business combination. The slides cover learning objectives related to FASB changes to business combination accounting, goodwill impairment assessment, reporting acquisition expenses, use of pro forma statements, and valuation of assets and liabilities acquired in a business combination.
Point of view: The financial reporting framework - Could changes to the not-f...PwC
The document discusses potential changes to financial reporting standards that may impact both non-profit and for-profit entities. The FASB has proposed changes to non-profit financial reporting and has research projects underway on for-profit performance reporting and cash flows. The changes to non-profit standards may influence the direction of the for-profit projects. For-profit entities are encouraged to comment on areas of the non-profit proposal that intersect with the for-profit research to help the FASB maintain consistency across reporting models.
Presentation from Ohio CPA Firm, Rea & Associates on AP and Contracts Payable for Ohio Businesses. Topics discussed include ORC requirements, Compling AP and contracts payable for GAAP financial statements, Internal Controls over AP, and common audit deficiences in AP.
1. The document outlines the conceptual framework for financial reporting established by the FASB. The framework consists of three levels: the objective of financial reporting, fundamental qualitative characteristics and elements, and concepts for recognition, measurement, and disclosure.
2. It describes the key components of each level, including the basic objective to provide useful information to investors and creditors, qualitative characteristics like relevance and faithful representation, and defined elements like assets, liabilities, and equity.
3. Basic assumptions and principles are also discussed, such as the monetary unit and historical cost assumptions, as well as the revenue and expense recognition principles. An exception for the cost constraint is noted.
The document summarizes changes to estate laws in 2011 and 2012. Key points include:
- The federal estate tax exemption was $5 million in 2011 and increased to $5.12 million in 2012. Tennessee's exemption remained at $1 million.
- The federal estate and gift tax rate was 35% in 2011-2012. Tennessee's maximum rate is 9.5%.
- Portability between spouses was extended, allowing married couples to shield up to $10 million from federal estate taxes. Tennessee does not recognize portability.
- Other changes included the gift tax annual exclusion amount and generation-skipping tax exemption and rates.
This document provides information about Ram Naresh Financial Consultancy Private Limited, including its corporate office address and contact details. It lists the directors and their details such as name, address, designation, and date of appointment. It also provides contact information for Ram Financial Network's customer support.
- Each interface must belong to a different network, two interfaces can be configured to belong to the same network but only ONE will be ACTIVE.
- If two interfaces are configured with IP addresses from the same network, the message "192.168.1.0 overlaps with FastEthernet0/0" will appear.
- If an interface is attempted to be enabled, the message "172.16.0.0 overlaps with FastEthernet0/0" will appear, indicating incorrect IP address assignment.
Como se calcula o pib ine 07 novembro 2013Thiago Penedo
1) O documento explica como se calcula o Produto Interno Bruto (PIB) de uma nação, que representa o valor total de bens e serviços produzidos por residentes num determinado período.
2) O PIB pode ser calculado por três abordagens: produção, despesa e rendimento. Na União Europeia, usa-se principalmente as abordagens de produção e despesa.
3) O cálculo do PIB anual usa várias fontes estatísticas e é mais preciso, enquanto o cálculo trimestral deve usar estim
This document provides an overview of different parts of cars including lights, interiors, chasis, brakes, suspension, and engines. It describes various types of cars such as hatchbacks, sedans, sports cars, SUVs, and minivans. It also discusses different components of cars like types of lights, interiors for different vehicles, chassis, how brakes work, suspension systems, and details about internal combustion engines. The conclusion is that cars are complex machines that vary in sophistication and power depending on price.
The need to promote mental health and tackle sigma made us take the stage at a local health fair. The day was shared amongst people who use mental health services and those who work alongside them.
This document discusses educational leadership and ICT policy. It defines policy and discusses key elements of policy, including problem definition, goals, and instruments. It also discusses analyzing policy statements through different frameworks such as logical analysis of internal consistency. The document provides examples of analyzing ICT in education policies and discusses using a self-review framework to evaluate how schools integrate technology.
El documento presenta las 7 Obras de Misericordia Corporales y las 7 Obras de Misericordia Espirituales. Las Obras de Misericordia Corporales son: 1) Dar de comer al hambriento. 2) Dar de beber al sediento. 3) Dar posada al peregrino. 4) Vestir al desnudo. 5) Visitar al enfermo. 6) Visitar a los encarcelados. 7) Enterrar a los difuntos. Las Obras de Misericordia Espirituales son: 1) Enseñar al que no sabe. 2) Dar buen
This document discusses fair value accounting from the perspective of investors and analysts. It provides an overview of the CFA Institute's Comprehensive Business Reporting Model, which advocates for fair value measurements to provide the most relevant information for financial decision making. While preparers may object to fair value due to increased volatility, investors require fair values as assets and liabilities are measured based on their ability to generate cash flows rather than outdated historical costs. The document addresses frequent objections to fair value and provides survey results that show investor support for fair value as the primary measurement basis.
The document introduces International Financial Reporting Standards (IFRS). It discusses the objectives of IFRS which are to develop a single set of high-quality global accounting standards to help participants in capital markets make economic decisions. It also covers the scope of IFRS, listing some IFRS standards and outlining what types of entities and financial reports IFRS applies to.
Bentleys is proud to offer you the slides from our Financial Reporting Bootcamp 2015, for all financial statement preparers, designed specifically to address the current hot issues & new developments facing our profession.
The Bootcamp will provide you with practical solutions, tools and skills that will make the preparation of your financial statements easier.
If you are a Finance Director, Chief Financial Officer or a Financial Controller then this slide page will be for you.
What You will Learn
Insight into the changes in financial reporting requirements
Highlighting current hot topics
Providing you with practical application of these changes
Showing you how to address these issues holistically in the “real-world” context
Learn through practical workshop sessions
Discuss the issues in the context of relevant case studies
Keep up to date & improve your reporting skills
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide a common global language for business affairs. IFRS provide guidelines for financial statements to be comparable, understandable, reliable and relevant across international boundaries. Over 110 countries either require or allow the use of IFRS. While IFRS and Indian accounting standards have many similarities, there are some differences in areas such as classification of expenses, treatment of government grants, and requirements for interim financial reporting. Adoption of IFRS aims to improve transparency and access to global capital.
La educación ambiental se define como un proceso educativo permanente mediante el cual la comunidad toma conciencia de su realidad global y las relaciones entre las personas y el medio ambiente. Tiene como objetivos ayudar a las personas a desarrollar una mayor sensibilidad y conocimientos sobre el medio ambiente, así como valores y habilidades para resolver problemas ambientales. Algunas estrategias clave incluyen la coordinación interinstitucional, la inclusión de la educación ambiental en los currículos escolares, la participación ciudadana e investigación sobre problemas ambientales.
Sadikin Gani adalah seorang fotografer yang tertarik pada isu-isu sosial dan budaya. Ia memiliki pengalaman lebih dari 10 tahun sebagai peneliti antropologi dan 5 tahun sebagai konsultan manajemen konten dan e-commerce. Sadikin Gani mendirikan beberapa startup seperti The Actual Style, The Edit Post, dan Satusatu, sebuah hub fashion. Ia sering memotret acara fashion di berbagai kota di Indonesia.
- IFRS 13 sets out a single framework for measuring fair value and requires disclosures about fair value measurements. It does not introduce any new requirements to measure assets or liabilities at fair value or change what is measured at fair value. IFRS 13 is effective from January 1, 2013.
- Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement determined using valuation techniques.
- When measuring fair value of non-financial assets, highest and best use must reflect the use that maximizes value from a market participant perspective considering physical possibility, legal permissibility,
This document discusses Muhammad Yunus and social business. It defines social business as a non-dividend company created to solve social problems that follows seven principles drafted by Yunus. Some key points include that social businesses aim to overcome issues like poverty rather than maximize profits. They also ensure financial sustainability and that investors only recover their initial investment. The document provides an example of a social business that provides access to water and discusses the global social business movement and organizations that support it like Yunus Social Business and the Grameen Creative Lab.
Ch02-conceptual framework or financial reportingVivi Tazkia
The document provides an overview and learning objectives for a chapter on the conceptual framework for financial reporting. It discusses the need for a conceptual framework to establish consistent concepts to underlie financial reporting standards. It describes efforts to construct a conceptual framework, which comprises chapters on the objective of financial reporting, qualitative characteristics of accounting information, and basic concepts related to recognition, measurement and disclosure. The chapter objectives cover understanding the usefulness of the conceptual framework, its development, the financial reporting objective, qualitative characteristics, basic elements of financial statements, accounting assumptions, and how the cost constraint affects reporting.
LINEAMIENTOS PARA LA ORGANIZACIÓN Y FUNCIONAMIENTO DE LOS CONSEJOS TÉCNICOS E...hugomedina36
Este documento presenta lineamientos para la organización y funcionamiento de los Consejos Técnicos Escolares en la educación básica en México. Describe el Consejo Técnico Escolar como un órgano colegiado integrado por el director y docentes que planifica decisiones para cumplir con la misión escolar. Establece que estos consejos deben reorganizarse para mejorar los resultados educativos, garantizar la calidad de la educación obligatoria y asegurar el máximo aprendizaje de los estudiantes.
Assurance and advisory firm Nkonki will be hosting a roundtable session exclusively for CFOs with Darrel Scott, Board Member of the IFRS Foundation. Scott, who is in Johannesburg for the occasion, will provide global and industry insights on the newly-released IFRS 16, issued on 13 January 2016, to CFOs from many of South Africa’s leading companies.
“The session is designed to share insights and deliberate on how this new accounting standard will impact processes and financial reporting, and how industries across the globe will deal with this change,” says Sindi Zilwa, CEO of Nkonki. It will also provide an update on accounting developments in the medium term.
The International Accounting Standards Board (IASB) issued IFRS 16 Leases in January 2016. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, namely, the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective from 1 January 2019. IFRS 16 completes the IASB’s project to improve the financial reporting of leases. IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations.
Alyvix: Synthetic Monitoring @ Icinga Camp Berlin 2017Julia Helfer
Alyvix is a synthetic monitoring system based on computer vision, that automates interactions with application GUIs, exactly as a human user would do and measures the perceived performance. At the Icinga Camp Berlin 2017, Francesco Melchiori presented the open source tool and it's integration to Icinga 2.
GAAP Accounting Update: A Review of Recent Changes in GAAP - Derek DanielDecosimoCPAs
This document summarizes recent changes and proposed changes to GAAP standards. It discusses amendments to accounting for unrecognized tax benefits, the definition of a public business entity, accounting alternatives for private companies regarding goodwill impairment testing and amortization, and a simplified hedge accounting approach for certain interest rate swaps entered into by private companies. The overall intent is to reduce costs for private companies by simplifying some accounting and financial reporting requirements.
Proposed Accounting Standards Update for Not-for-Profits and Healthcare EntitiesCBIZ & MHM Phoenix
The FASB issued this Exposure Draft to propose amendments to financial reporting standards for not-for-profit entities. The proposed amendments aim to improve the usefulness of financial statements by simplifying net asset classifications, standardizing how operating activities are reported, and enhancing liquidity and cash flow disclosures. Key provisions include requiring reporting of two classes of net assets rather than three, additional subtotals on the statement of activities related to operating activities, and classifying certain cash flows differently, such as classifying purchases and sales of long-lived assets as operating cash flows. The Exposure Draft solicits public comment on the proposed changes by August 20, 2015.
Como se calcula o pib ine 07 novembro 2013Thiago Penedo
1) O documento explica como se calcula o Produto Interno Bruto (PIB) de uma nação, que representa o valor total de bens e serviços produzidos por residentes num determinado período.
2) O PIB pode ser calculado por três abordagens: produção, despesa e rendimento. Na União Europeia, usa-se principalmente as abordagens de produção e despesa.
3) O cálculo do PIB anual usa várias fontes estatísticas e é mais preciso, enquanto o cálculo trimestral deve usar estim
This document provides an overview of different parts of cars including lights, interiors, chasis, brakes, suspension, and engines. It describes various types of cars such as hatchbacks, sedans, sports cars, SUVs, and minivans. It also discusses different components of cars like types of lights, interiors for different vehicles, chassis, how brakes work, suspension systems, and details about internal combustion engines. The conclusion is that cars are complex machines that vary in sophistication and power depending on price.
The need to promote mental health and tackle sigma made us take the stage at a local health fair. The day was shared amongst people who use mental health services and those who work alongside them.
This document discusses educational leadership and ICT policy. It defines policy and discusses key elements of policy, including problem definition, goals, and instruments. It also discusses analyzing policy statements through different frameworks such as logical analysis of internal consistency. The document provides examples of analyzing ICT in education policies and discusses using a self-review framework to evaluate how schools integrate technology.
El documento presenta las 7 Obras de Misericordia Corporales y las 7 Obras de Misericordia Espirituales. Las Obras de Misericordia Corporales son: 1) Dar de comer al hambriento. 2) Dar de beber al sediento. 3) Dar posada al peregrino. 4) Vestir al desnudo. 5) Visitar al enfermo. 6) Visitar a los encarcelados. 7) Enterrar a los difuntos. Las Obras de Misericordia Espirituales son: 1) Enseñar al que no sabe. 2) Dar buen
This document discusses fair value accounting from the perspective of investors and analysts. It provides an overview of the CFA Institute's Comprehensive Business Reporting Model, which advocates for fair value measurements to provide the most relevant information for financial decision making. While preparers may object to fair value due to increased volatility, investors require fair values as assets and liabilities are measured based on their ability to generate cash flows rather than outdated historical costs. The document addresses frequent objections to fair value and provides survey results that show investor support for fair value as the primary measurement basis.
The document introduces International Financial Reporting Standards (IFRS). It discusses the objectives of IFRS which are to develop a single set of high-quality global accounting standards to help participants in capital markets make economic decisions. It also covers the scope of IFRS, listing some IFRS standards and outlining what types of entities and financial reports IFRS applies to.
Bentleys is proud to offer you the slides from our Financial Reporting Bootcamp 2015, for all financial statement preparers, designed specifically to address the current hot issues & new developments facing our profession.
The Bootcamp will provide you with practical solutions, tools and skills that will make the preparation of your financial statements easier.
If you are a Finance Director, Chief Financial Officer or a Financial Controller then this slide page will be for you.
What You will Learn
Insight into the changes in financial reporting requirements
Highlighting current hot topics
Providing you with practical application of these changes
Showing you how to address these issues holistically in the “real-world” context
Learn through practical workshop sessions
Discuss the issues in the context of relevant case studies
Keep up to date & improve your reporting skills
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide a common global language for business affairs. IFRS provide guidelines for financial statements to be comparable, understandable, reliable and relevant across international boundaries. Over 110 countries either require or allow the use of IFRS. While IFRS and Indian accounting standards have many similarities, there are some differences in areas such as classification of expenses, treatment of government grants, and requirements for interim financial reporting. Adoption of IFRS aims to improve transparency and access to global capital.
La educación ambiental se define como un proceso educativo permanente mediante el cual la comunidad toma conciencia de su realidad global y las relaciones entre las personas y el medio ambiente. Tiene como objetivos ayudar a las personas a desarrollar una mayor sensibilidad y conocimientos sobre el medio ambiente, así como valores y habilidades para resolver problemas ambientales. Algunas estrategias clave incluyen la coordinación interinstitucional, la inclusión de la educación ambiental en los currículos escolares, la participación ciudadana e investigación sobre problemas ambientales.
Sadikin Gani adalah seorang fotografer yang tertarik pada isu-isu sosial dan budaya. Ia memiliki pengalaman lebih dari 10 tahun sebagai peneliti antropologi dan 5 tahun sebagai konsultan manajemen konten dan e-commerce. Sadikin Gani mendirikan beberapa startup seperti The Actual Style, The Edit Post, dan Satusatu, sebuah hub fashion. Ia sering memotret acara fashion di berbagai kota di Indonesia.
- IFRS 13 sets out a single framework for measuring fair value and requires disclosures about fair value measurements. It does not introduce any new requirements to measure assets or liabilities at fair value or change what is measured at fair value. IFRS 13 is effective from January 1, 2013.
- Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement determined using valuation techniques.
- When measuring fair value of non-financial assets, highest and best use must reflect the use that maximizes value from a market participant perspective considering physical possibility, legal permissibility,
This document discusses Muhammad Yunus and social business. It defines social business as a non-dividend company created to solve social problems that follows seven principles drafted by Yunus. Some key points include that social businesses aim to overcome issues like poverty rather than maximize profits. They also ensure financial sustainability and that investors only recover their initial investment. The document provides an example of a social business that provides access to water and discusses the global social business movement and organizations that support it like Yunus Social Business and the Grameen Creative Lab.
Ch02-conceptual framework or financial reportingVivi Tazkia
The document provides an overview and learning objectives for a chapter on the conceptual framework for financial reporting. It discusses the need for a conceptual framework to establish consistent concepts to underlie financial reporting standards. It describes efforts to construct a conceptual framework, which comprises chapters on the objective of financial reporting, qualitative characteristics of accounting information, and basic concepts related to recognition, measurement and disclosure. The chapter objectives cover understanding the usefulness of the conceptual framework, its development, the financial reporting objective, qualitative characteristics, basic elements of financial statements, accounting assumptions, and how the cost constraint affects reporting.
LINEAMIENTOS PARA LA ORGANIZACIÓN Y FUNCIONAMIENTO DE LOS CONSEJOS TÉCNICOS E...hugomedina36
Este documento presenta lineamientos para la organización y funcionamiento de los Consejos Técnicos Escolares en la educación básica en México. Describe el Consejo Técnico Escolar como un órgano colegiado integrado por el director y docentes que planifica decisiones para cumplir con la misión escolar. Establece que estos consejos deben reorganizarse para mejorar los resultados educativos, garantizar la calidad de la educación obligatoria y asegurar el máximo aprendizaje de los estudiantes.
Assurance and advisory firm Nkonki will be hosting a roundtable session exclusively for CFOs with Darrel Scott, Board Member of the IFRS Foundation. Scott, who is in Johannesburg for the occasion, will provide global and industry insights on the newly-released IFRS 16, issued on 13 January 2016, to CFOs from many of South Africa’s leading companies.
“The session is designed to share insights and deliberate on how this new accounting standard will impact processes and financial reporting, and how industries across the globe will deal with this change,” says Sindi Zilwa, CEO of Nkonki. It will also provide an update on accounting developments in the medium term.
The International Accounting Standards Board (IASB) issued IFRS 16 Leases in January 2016. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, namely, the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 is effective from 1 January 2019. IFRS 16 completes the IASB’s project to improve the financial reporting of leases. IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations.
Alyvix: Synthetic Monitoring @ Icinga Camp Berlin 2017Julia Helfer
Alyvix is a synthetic monitoring system based on computer vision, that automates interactions with application GUIs, exactly as a human user would do and measures the perceived performance. At the Icinga Camp Berlin 2017, Francesco Melchiori presented the open source tool and it's integration to Icinga 2.
GAAP Accounting Update: A Review of Recent Changes in GAAP - Derek DanielDecosimoCPAs
This document summarizes recent changes and proposed changes to GAAP standards. It discusses amendments to accounting for unrecognized tax benefits, the definition of a public business entity, accounting alternatives for private companies regarding goodwill impairment testing and amortization, and a simplified hedge accounting approach for certain interest rate swaps entered into by private companies. The overall intent is to reduce costs for private companies by simplifying some accounting and financial reporting requirements.
Proposed Accounting Standards Update for Not-for-Profits and Healthcare EntitiesCBIZ & MHM Phoenix
The FASB issued this Exposure Draft to propose amendments to financial reporting standards for not-for-profit entities. The proposed amendments aim to improve the usefulness of financial statements by simplifying net asset classifications, standardizing how operating activities are reported, and enhancing liquidity and cash flow disclosures. Key provisions include requiring reporting of two classes of net assets rather than three, additional subtotals on the statement of activities related to operating activities, and classifying certain cash flows differently, such as classifying purchases and sales of long-lived assets as operating cash flows. The Exposure Draft solicits public comment on the proposed changes by August 20, 2015.
FASB Proposals Affecting Government ContractorsDecosimoCPAs
The document summarizes key proposals from the FASB and IASB exposure drafts on revenue recognition. It discusses the core principle of recognizing revenue as control of goods or services is transferred to customers. It also outlines the five steps to apply the new standard: 1) identify contracts, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate price to obligations, and 5) recognize revenue when obligations are satisfied. Government contractors will need to evaluate how these changes may affect their accounting and revenue recognition.
BUS LAW2HRM Management Discussion boardDis.docxhartrobert670
BUS LAW 2
HRM Management Discussion board
Discuss what challenges an HR department may face when their company decides to expand into other countries. Do you think it would be beneficial if the company that is expanding is already affiliated with an international union? How would it affect the challenges that HR is already faced with?
References
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2011). Fundamentals of human resource management (4thed.). Chicago, IL: McGraw-Hill.
HRM Management Discussion board
Discuss what challenges an HR department may
face when their company decides to
expand into other countries. Do you think it would be beneficial if the company that is
expanding is already affiliated with an international union? How would it affect the
challenges that HR is already faced with
?
R
eferences
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2011).
Fundamentals of human
resource management
(4
th
ed.). Chicago, IL: McGraw
-
Hill.
HRM Management Discussion board
Discuss what challenges an HR department may face when their company decides to
expand into other countries. Do you think it would be beneficial if the company that is
expanding is already affiliated with an international union? How would it affect the
challenges that HR is already faced with?
References
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2011). Fundamentals of human
resource management (4
th
ed.). Chicago, IL: McGraw-Hill.
BILTRITE PRACTICE CASE
Module XV of the Biltrite audit practice case contains an audit report exercise.
This exercise may be completed at this time.
Module XV: Audit Report
The Denise Vaughan audit team completed its audit field work on February 15,
2010. A conference was held on that date involving members of the audit
firm and Biltrite management. Participants in the conference were Denise
Vaughan, partner in charge of the Biltrite engagement; Carolyn Volmar,
audit manager; Richard Derick, in-charge auditor; Trevor Lawton, Biltrite’s
CEO; Gerald Groth, Biltrite’s controller; and Marlene McAfee, Biltrite’s trea-
surer. The Biltrite representatives agreed to all of the audit adjustments and
reclassifications proposed by the audit team, and they agreed to reflect them
in the December 31, 2009, financial statements. They also agreed to modify
and/or add footnote disclosures as recommended by the audit team.
At the conclusion of the conference, the audit team obtained a client repre-
sentation letter from Biltrite management and presented management with a
copy of the “significant deficiencies” letter outlining discovered internal control
deficiencies. The original of this letter was sent to Biltrite’s audit committee.
The legal action initiated against Biltrite by Rollfast, a competitor, for
alleged patent infringement, was not yet settled as of February 15. Because the
letter obtained by Derick from Biltrite’s outside legal couns ...
The Financial Accounting Standards Board (FASB) is wrapping up some major projects. It released additional updates to revenue recognition and the long-awaited changes to financial instruments: credit losses in the second quarter of 2016. It also released exposure drafts on smaller scale projects. Activity with this Board is expected to continue, with eight exposure drafts and three final standards scheduled for the third quarter.
Decosimo Assurance Manager Derek Daniel presented "GAAP Accounting Update" at the 2013 Decosimo Accounting Forum hosted by the University of North Alabama on July 19.
The External Reporting Board and other organizations have begun seminars to educate registered charities about upcoming changes to financial reporting and assurance requirements. New standards will require charities to prepare financial statements using accrual or cash accounting depending on size, and will establish tiers for reporting and assurance based on operating expenses. Large charities with over $1 million in expenses will need an audit, while medium charities between $400,000-1 million can choose an audit or review. Only qualified accountants will be able to perform assurance services for large and medium charities under the new laws.
The FASB’s latest proposal on going concern uncertainties introduces a new layer of accounting guidance that adds to the existing requirements set by auditing standards and SEC regulations. The proposed new guidance responds to a wave of unwelcome surprises, as scores of companies faced unexpected liquidity problems during an economic downturn that adversely affected businesses while the FASB’s previous (2008) proposal was sidetracked by other priorities. The added guidance may not eliminate these kinds of surprises altogether, but it provides a more systematic approach that is designed to promote more consistency in the nature and timing of disclosures about an entity’s ability to continue as a going concern. This Messenger summarizes the proposal, along with the questions, suggestions, and concerns cited in comment letters.
This document discusses accounting for events after the reporting period according to Ind AS 10. It defines adjusting and non-adjusting events and how they should be treated. Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustment to amounts recognized in financial statements. Non-adjusting events indicate conditions that arose after the reporting period and do not result in adjustment, but require disclosure if important to users. The document provides examples to illustrate accounting for adjusting versus non-adjusting events.
Streamlining Compliance for Community BanksScott White
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this latest edition of out quarterly publication summarizes SEC developments in the last quarter. Highlights include SEC staff guidance on tax reform, remarks by SEC Chairman Jay Clayton and members of the SEC staff at the recent AICPA Conference on Current SEC and PCAOB Developments on the new accounting standards, critical audit matters and cybersecurity, and a discussion of Mr. Clayton’s concerns about initial coin offerings. We also discuss recent SEC rulemaking activities, SEC staff guidance updates and significant personnel changes.
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ACCOUNTING STANDARDS(Revised) IN SHORT piyushjain458
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Amendments to Schedule III to the Companies Act, 2013Taxmann
With the coming financial year 2021-22, the companies and auditors have to deal with tons of new disclosure requirements while preparing and presenting financial statements and audit reports. There has been a wide range of implications on financial reporting that should be considered while preparing the financial Statements and one among these covers the recent amendments in Schedule III to the Companies Act, 2013. Let’s hear expert’s opinion on the changes and its nearest impact on the companies and the auditors.
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2) The qualitative characteristics that make accounting information useful are relevance, faithful representation, comparability, verifiability, timeliness, and understandability.
3) The basic elements of financial statements are assets, liabilities, equity, investments by owners, distributions to owners, comprehensive income.
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Similar to FASB Accounting Standards Codification Update 2011 (20)
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Introduction
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
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These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
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5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
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13. The Double Diamond
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16. Edward de Bono’s Six Thinking Hats
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To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
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1. A Global Reach with a Local Perspective
University of North Alabama
19th Annual Decosimo Accounting Forum
July 22, 2011
www.decosimo.com
FASB ACCOUNTING STANDARDS
CODIFICATION UPDATE 2011
DEREK DANIEL, CPA
Assurance Manager
2. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
Why Is the FASB Issuing This Accounting Standards Update (Update)?
Under Topic 350 on goodwill and other intangible assets, testing for goodwill
impairment is a two-step test.
When a goodwill impairment test is performed (either on an annual or
interim basis), an entity must assess whether the carrying amount of a
reporting unit exceeds its fair value (Step 1). If it does, an entity must
perform an additional test to determine whether goodwill has been impaired
and to calculate the amount of that impairment (Step 2).
The objective of this Update is to address questions about entities with
reporting units with zero or negative carrying amounts because some
entities concluded that Step 1 of the test is passed in those circumstances
because the fair value of their reporting unit will generally be greater than
zero. As a result of that conclusion, some constituents raised concerns that
Step 2 of the test is not performed despite factors indicating that goodwill
may be impaired. The amendments in this Update do not provide guidance
on how to determine the carrying amount or measure the fair value of the
reporting unit.
3. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
Who Is Affected by the Amendments in This Update?
The amendments in this Update affect all entities that have
recognized goodwill and have one or more reporting units whose
carrying amount for purposes of performing Step 1 of the goodwill
impairment test is zero or negative.
4. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
What Are the Main Provisions?
The amendments in this Update modify Step 1 of the goodwill
impairment test for reporting units with zero or negative carrying
amounts.
For those reporting units, an entity is required to perform Step 2 of the
goodwill impairment test if it is more likely than not that a goodwill
impairment exists.
In determining whether it is more likely than not that a goodwill
impairment exists, an entity should consider whether there are any
adverse qualitative factors indicating that an impairment may exist. The
qualitative factors are consistent with the existing guidance and
examples in paragraph 350-20-35-30, which requires that goodwill of a
reporting unit be tested for impairment between annual tests if an event
occurs or circumstances change that would more likely than not reduce
the fair value of a reporting unit below its carrying amount.
5. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
ASC 350-20-35-30 Goodwill of a reporting unit shall be tested for impairment between annual
tests if an event occurs or circumstances change that would more likely than not reduce the fair
value of a reporting unit below its carrying amount. Examples of such events or circumstances
include the following:
a. A significant adverse change in legal factors or in the business climate
b. An adverse action or assessment by a regulator
c. Unanticipated competition
d. A loss of key personnel
e. A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit
will be sold or otherwise disposed of
f. The testing for recoverability under the Impairment or Disposal of Long-Lived Assets
Subsections of Subtopic 360-10 of a significant asset group within a reporting unit
g. Recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a
component of a reporting unit.
6. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
How Do the Main Provisions Differ from Current U.S. Generally
Accepted Accounting Principles (GAAP) and Why Are They an
Improvement?
The amendments in this Update modify Step 1 of the goodwill
impairment test for reporting units with zero or negative carrying
amounts. As a result, current GAAP will be improved by eliminating
an entity’s ability to assert that a reporting unit is not required to
perform Step 2 because the carrying amount of the reporting unit is
zero or negative despite the existence of qualitative factors that
indicate the goodwill is more likely than not impaired. As a result,
goodwill impairments may be reported sooner than under current
practice.
7. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
When Will the Amendments Be Effective?
For public entities, the amendments in this Update are effective for fiscal years,
and interim periods within those years, beginning after December 15, 2010.
Early adoption is not permitted.
For nonpublic entities, the amendments are effective for fiscal years, and interim
periods within those years, beginning after December 15, 2011. Nonpublic
entities may early adopt the amendments using the effective date for public
entities.
Upon adoption of the amendments, an entity with reporting units that have
carrying amounts that are zero or negative is required to assess whether it is
more likely than not that the reporting units’ goodwill is impaired. If the entity
determines that it is more likely than not that the goodwill of one or more of its
reporting units is impaired, the entity should perform Step 2 of the goodwill
impairment test for those reporting unit(s). Any resulting goodwill impairment
should be recorded as a cumulative-effect adjustment to beginning retained
earnings in the period of adoption.
Any goodwill impairments occurring after the initial adoption of the amendments
should be included in earnings as required by Section 350-20-35.
8. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
How Do the Provisions Compare with International Financial Reporting
Standards (IFRS)?
The provisions provide guidance on when to perform Step 2 of the goodwill
impairment test for reporting units with zero or negative carrying amounts.
Entities that follow IFRS use a different impairment model under IAS 36,
Impairment of Assets, which is a single-step goodwill impairment test.
9. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
Objections to this update:
Some people object to the issuance of this Accounting Standards
Update. These people agree with the concept of requiring the use of
qualitative factors in assessing whether a goodwill impairment exists
when there is a reporting unit with a nominal carrying amount; however,
they object to the establishment of a bright line to determine when
qualitative factors should be considered. They believe that the masking
of a goodwill impairment by a reporting unit with a positive fair value
can just as easily occur with reporting units with nominal, positive
carrying amounts as it can with reporting units with zero or negative
carrying amounts. They would have supported the development of a
principle to address these concerns rather than the use of a bright line
that fails to address similar situations.
10. FASB Accounting Standards Update 2010-28, Intangibles - Goodwill and Other
(Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for
Reporting Units with Zero or Negative Carrying Amounts
Determining the Implied Fair Value of Goodwill (Step 2 of Goodwill
Impairment test)
ASC 350-20-35-14 The implied fair value of goodwill shall be determined in
the same manner as the amount of goodwill recognized in a business
combination or an acquisition by a not-for-profit entity was determined. That
is, an entity shall assign the fair value of a reporting unit to all of the assets
and liabilities of that unit (including any unrecognized intangible assets) as if
the reporting unit had been acquired in a business combination or an
acquisition by a not-for-profit entity. Throughout this Section, the term
business combination includes an acquisition by a not-for-profit entity.
11. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
Why Is the FASB Issuing This Accounting Standards Update
The objective of this Update is:
To improve the comparability, consistency, and transparency of financial
reporting and to increase the prominence of items reported in other
comprehensive income.
To increase the prominence of items reported in other comprehensive
income and to facilitate convergence of U.S. generally accepted accounting
principles (GAAP) and International Financial Reporting Standards (IFRS),
the FASB decided to eliminate the option to present components of other
comprehensive income as part of the statement of changes in stockholders’
equity, among other amendments in this Update.
12. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
Why Is the FASB Issuing This Accounting Standards Update
The amendments require that all nonowner changes in stockholders’ equity
be presented either in a single continuous statement of comprehensive
income or in two separate but consecutive statements. In the two-statement
approach, the first statement should present total net income and its
components followed consecutively by a second statement that should
present total other comprehensive income, the components of other
comprehensive income, and the total of comprehensive income.
13. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
Who Is Affected by the Amendments in This Update?
All entities that report items of other comprehensive income, in any
period presented, will be affected by the changes in this Update.
14. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
What Are the Main Provisions?
Under the amendments to Topic 220, Comprehensive Income, in
this Update, an entity has the option to present the total of
comprehensive income, the components of net income, and the
components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate
but consecutive statements. In both choices, an entity is required to
present each component of net income along with total net income,
each component of other comprehensive income along with a total
for other comprehensive income, and a total amount for
comprehensive income.
15. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
What Are the Main Provisions?
In a single continuous statement, the entity is required to present the
components of net income and total net income, the components of other
comprehensive income and a total for other comprehensive income, along
with the total of comprehensive income in that statement.
In the two-statement approach, an entity is required to present components
of net income and total net income in the statement of net income. The
statement of other comprehensive income should immediately follow the
statement of net income and include the components of other
comprehensive income and a total for other comprehensive income, along
with a total for comprehensive income.
16. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
What Are the Main Provisions?
The amendments in this Update do not change the items that must be
reported in other comprehensive income or when an item of other
comprehensive income must be reclassified to net income.
The amendments do not change the option for an entity to present
components of other comprehensive income either net of related tax effects
or before related tax effects, with one amount shown for the aggregate
income tax expense or benefit related to the total of other comprehensive
income items.
In both cases, the tax effect for each component must be disclosed in the
notes to the financial statements or presented in the statement in which
other comprehensive income is presented.
The amendments do not affect how earnings per share is calculated or
presented.
17. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
How Do the Main Provisions Differ from Current U.S. Generally Accepted
Accounting Principles (GAAP) and Why Are They an Improvement?
Current U.S. GAAP allows reporting entities three alternatives for presenting
other comprehensive income and its components in financial statements.
One of those presentation options is to present the components of other
comprehensive income as part of the statement of changes in stockholders’
equity. This Update eliminates that option.
In addition, current U.S. GAAP does not require consecutive presentation of
the statement of net income and other comprehensive income.
Finally, current U.S. GAAP does not require an entity to present
reclassification adjustments on the face of the financial statements from
other comprehensive income to net income, which is required by the
guidance in this Update.
These changes apply to both annual and interim financial statements.
These improvements will help financial statement users better understand
the causes of an entity’s change in financial position and results of
operations.
18. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
When Will the Amendments Be Effective?
The amendments in this Update should be applied retrospectively.
For public entities, the amendments are effective for fiscal years, and
interim periods within those years, beginning after December 15, 2011.
For nonpublic entities, the amendments are effective for fiscal years ending
after December 15, 2012, and interim and annual periods thereafter.
Early adoption is permitted, because compliance with the amendments is
already permitted. The amendments do not require any transition
disclosures.
19. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
How Do the Provisions Compare with International Financial Reporting
Standards (IFRS)?
This Update is the result of a joint project conducted by the FASB
and the IASB to improve the presentation of comprehensive
income in a manner that is as convergent as possible.
IFRS currently permits components of other comprehensive
income to be presented either in a single statement or in two
consecutive statements. Therefore, the amendments will result in
more converged guidance on how comprehensive income is
presented under both U.S. GAAP and IFRS.
20. FASB Accounting Standards Update 2011-05, Comprehensive Income (Topic
220): Presentation of Comprehensive Income
How Do the Provisions Compare with International Financial Reporting
Standards (IFRS)?
Although the two Boards agree on how items of comprehensive income
should be presented, other differences in reporting comprehensive
income between U.S. GAAP and IFRS will remain that affect the
comparability of financial statements prepared under U.S. GAAP and
IFRS. In particular, there are some differences between the types of
items reported in other comprehensive income and the requirements for
reclassifying those items into net income. (foreign currency
adjustments, derivative instruments, unrealized gains/losses on
available-for-sale securities, etc.)
Removing certain presentation options will make it easier to compare
statements of comprehensive income prepared using U.S. GAAP with
those prepared using IFRS.
21. FASB Accounting Standards Update 2011-04, Fair Value Measurement (Topic
820): Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP and IFRSs
This ASU represents the converged guidance of the FASB and the IASB
(the Boards) on fair value measurement. The collective efforts of the Boards
and their staffs, reflected in ASU 2011-04, have resulted in common
requirements for measuring fair value and for disclosing information about
fair value measurements, including a consistent meaning of the term “fair
value.”
The Boards have concluded the common requirements will result in greater
comparability of fair value measurements presented and disclosed in
financial statements prepared in accordance with U.S. GAAP and IFRSs.
22. FASB Accounting Standards Update 2011-02, Receivables (Topic 310): A
Creditor’s Determination of Whether a Restructuring Is a Troubled Debt
Restructuring
The FASB believes the guidance in this ASU will improve financial reporting
by creating greater consistency in the way GAAP is applied for various
types of debt restructurings.
The ASU clarifies which loan modifications constitute troubled debt
restructurings. It is intended to assist creditors in determining whether a
modification of the terms of a receivable meets the criteria to be considered
a troubled debt restructuring, both for purposes of recording an impairment
loss and for disclosure of troubled debt restructurings.
In evaluating whether a restructuring constitutes a troubled debt
restructuring, a creditor must separately conclude that both of the following
exist: (a) the restructuring constitutes a concession; and (b) the debtor is
experiencing financial difficulties. The amendments to FASB Accounting
Standards Codification™ (Codification) Topic 310, Receivables, clarify the
guidance on a creditor’s evaluation of whether it has granted a concession
and whether a debtor is experiencing financial difficulties.
23. FASB Going Concern Project
Although the issue of "going concern" is an accounting
issue, the only authoritative guidance related to going
concern is found in the audit literature and guidance
related to compilations and reviews.
Given the importance of the issue in GAAP, accountants
often find it unsettling that the issue is not addressed
within GAAP.
24. FASB Going Concern Project
The going concern assumption is fundamental to accrual
accounting.
To assume that an entity will continue in business is to say that the
entity expects to realize its assets at the recorded amounts and to
extinguish its liabilities in the normal course of business.
Among other things, the going concern assumption justifies the
current and non-current classification within the balance sheet, the
allocation of costs over periods benefited, historical cost accounting,
and most aspects of the revenue recognition and matching
principles.
Continuation of an entity as a going concern is assumed in financial
reporting in the absence of significant information to the contrary.
Therefore, going concern is an accounting assumption.
25. FASB Going Concern Project
During 2007, 2008 and 2009 (no figures for 2010 as of the date this
presentation was prepared), over 3,000 public companies (or about
20% of U.S. public companies) had going concern paragraphs in
their audit report during each year.
Some people say, “going concern opinions,” but that is not true
because having that paragraph in an audit report does not affect the
opinion on the financial statements. It is an “explanatory
paragraph,” so it should be called, “a paragraph in the report” rather
than a “going concern opinion.”
It’s not a death sentence. All 3,000 of these companies did not go
out of business since they were classified as a going concern.
26. FASB Going Concern Project
AUTHORITATIVE GUIDANCE:
In 1981, the AICPA addressed the issue of going concern status through SAS
No. 34, The Auditor's Considerations When a Question Arises About an Entity's
Continued Existence.
In 1988, the AICPA issued SAS No. 59, The Auditor's Consideration of an
Entity's Ability to Continue as a Going Concern (AU §341), which remains the
authoritative guidance.
Prior to SAS No. 34, the authoritative literature provided little guidance on when
the auditor should consider modifying the audit report based on uncertainty that
the entity could continue as a going concern.
AU §341 provides guidance to the auditor in conducting an audit of financial
statements in accordance with generally accepted auditing standards (GAAS)
with respect to evaluating whether there is substantial doubt about the entity's
ability to continue as a going concern.
27. FASB Going Concern Project
AUTHORITATIVE GUIDANCE (continued):
The consideration of an entity's ability to continue as a going concern is
required in every audit performed under GAAS, and is an especially
important consideration in the current state of the economy.
An entity's ability to continue as a going concern is affected by many
factors related to the current uncertain economy-the industry and
geographic area in which it operates, the financial health of its
customers, suppliers, and financing sources. Accordingly, it is critical to
perform an individual analysis of going concern issues related to each
entity.
The consideration of an entity's ability to continue as a going concern
may be discussed during client retention procedures and also in the
earliest stages of the audit in conjunction with gaining an understanding
of the entity and its environment.
28. FASB Going Concern Project
The Financial Accounting Standards Board (FASB) has proposed changes
that would provide guidance on the preparation of financial statements as a
going concern and on management's responsibility to evaluate a reporting
entity's ability to continue as a going concern. It also would require certain
disclosures when the financial statements are not prepared on a going
concern basis, as well as provide guidance on the adoption and application of
the liquidation basis of accounting.
As an auditor, we are evaluating management's assertion about the entity's
ability to continue as a going concern.
29. FASB Going Concern Project
Liquidation Basis of Accounting
The Board decided to provide the following principles-based
guidance on the adoption and application of the liquidation basis
of accounting.
An entity should prepare financial statements on the going
concern basis unless liquidation is imminent. Liquidation is
imminent if:
(a) a plan of liquidation has been approved by the entity’s owners or
(b) the plan to liquidate is being imposed by other forces and it is
remote that the entity will become a going concern in the future.
30. FASB Going Concern Project
Liquidation Basis of Accounting cont.
An entity that applies the liquidation basis of accounting should
measure the items in its financial statements to reflect the actual
amount of cash that the entity expects to collect or pay during the
course of liquidation. This measurement should include, but is not
limited to, recognition of (a) costs to dispose of assets or liabilities and
(b) expense and income to be incurred through liquidation.
The measurement bases and significant assumptions used should be
disclosed.
31. FASB Going Concern Project
TIME HORIZON
AU §341 states that there is "a responsibility to evaluate
whether there is substantial doubt about the entity's ability to
continue as a going concern for a reasonable period of time,
not to exceed one year beyond the date of the financial
statements being audited."
International Accounting Standard (IAS 1), Presentation of
Financial Statements, requires that an entity consider "all
available information about the future, which is at least, but is
not limited to 12 months from the end of the reporting period"
when assessing whether the going concern assumption is
appropriate.
32. FASB Going Concern Project
TIME HORIZON (continued)
As such, the FASB decided that management should take into
account available information about the foreseeable future, which is
generally, but not limited to, 12 months from the end of the reporting
period. Certain events that are expected to occur or are reasonably
foreseeable beyond 12 months, and would materially affect the
assessment, are considered part of the foreseeable future.
The time frame beyond 12 months is limited to a practical amount of
time thereafter in which significant events or conditions that may
affect the evaluation can be identified.
The FASB does not intend for the assessment of the period beyond
a year to be open ended or an indefinite period.
33. FASB Going Concern Project
AU §341 states that the auditor's evaluation is based on
relevant conditions that exist at or have occurred prior to
the date of the audit report. Therefore, this is an ongoing
evaluation that extends through the date of the audit
report.
34. FASB Going Concern Project
In this proposal, the FASB decided not to specifically define a
"going concern." Instead, the FASB decided to require the
following disclosures when management, applying
"commercially reasonable business judgment," is aware of
conditions and events that indicate, based on current facts
and circumstances, that it is reasonably foreseeable that an
entity may not be able to meet its obligations as they become
due without substantial disposition of assets outside the
ordinary course of business, restructuring of debt, issuance of
equity, externally or internally forced revisions of operations,
or similar actions:
Pertinent conditions and events giving rise to the assessment,
including when such conditions and events are anticipated to
occur, if reasonably estimable
35. FASB Going Concern Project
(continued from previous slide)
The possible effects of those conditions and events
Possible discontinuance of operations
Management's evaluation of the significance of those
conditions and events and any mitigating factors
Management's plans to mitigate the effects of the conditions
and events, whether those plans can be effectively
implemented, and the likelihood that such plans will mitigate
the adverse effects
Information about the recoverability or classification of
recorded asset amounts or the amounts or classification of
liabilities
36. FASB Going Concern Project
The consideration of an entity's ability to continue as a going
concern is required in every audit performed under GAAS. You
meet this responsibility in the following manner:
Consider conditions and events (red flags) that indicate there could
be substantial doubt about the entity's ability to continue as a going
concern for a reasonable period of time
Identify and evaluate management's plans for dealing with the
conditions or events that prompted the substantial doubt conclusions
and assess the likelihood that such plans can be effectively
implemented
Draw a conclusion concerning the existence of substantial doubt
and consider the effect of this conclusion on disclosures in the
financial statements and modifications of the audit report.
37. FASB Going Concern Project
COMPILATION AND REVIEW ENGAGEMENTS
AR §80 and 90 provide guidance with respect to uncertainty about the entity's
ability to continue as a going concern. During the performance of compilation or
review procedures, evidence or information may come to your attention
indicating that there may be an uncertainty about the entity's ability to continue
as a going concern for a reasonable period of time. In those circumstances, you
should request that management consider the possible effects of the going
concern uncertainty on the financial statements, including the need for related
disclosure.
After management communicates the results of their consideration of the
possible effects on the financial statements, you should consider the
reasonableness of management's conclusions including the adequacy of the
related disclosures, if applicable.
If you conclude that the entity's disclosures with respect to the entity's ability to
continue as a going concern for a reasonable period of time are inadequate, a
GAAP departure exists.
38. FASB Going Concern Project
EFFECT ON REPORT WHEN DISCLOSURE IS ADEQUATE
When uncertainties related to the client's ability to continue as a going
concern exist, but are adequately disclosed in the financial statements,
AR §§80 and 90 state that it is not necessary to add a paragraph to the
standard compilation or review report describing the uncertainties.
On the other hand, AR §§80 and 90 state that although not required to
do so, you may consider drawing attention to this uncertainty in an
explanatory paragraph. If you decide to add such a separate
paragraph, it should not be referred to in the standard paragraphs of the
report.
You may add an emphasis paragraph to the compilation or review
report that contains wording similar to the following: As discussed in
Note X, certain conditions indicate that the Company may be unable to
continue as a going concern. The accompanying financial statements
do not include any adjustments to the financial statements that might be
necessary should the Company be unable to continue as a going
concern.
39. FASB Going Concern Project
REPORT MODIFICATION WHEN DISCLOSURE IS NOT
ADEQUATE
If the appropriate going-concern disclosures are not part
of the compiled or reviewed financial statements, your
report on the financial statements should include a
paragraph describing the departure from generally
accepted accounting principles (in this case, a disclosure
violation).
40. FASB Going Concern Project
When a business can no longer be considered a going
concern, financial statements should not be based on
accrual accounting but rather should reflect liquidation
values. If you become aware that the going-concern
concept is inappropriate but the client refuses to use the
liquidation basis to prepare the financial statements, you
should withdraw from the engagement.
41. FASB Going Concern Project
The SSARS also provide guidance to help determine whether the
adequate disclosure standard has been achieved when the ability of the
client to continue as a going concern is in question. A non-authoritative
exhibit to the SSARS Codification states that disclosures with respect to
the going-concern question could include:
Factors that are the basis for raising the question of going concern
Possible effects on the financial statements of the factors that raised the
question of going concern
Management's assessment of the significance of the factors and any
mitigating circumstances
Possible discontinuance of operations
Management's plans to deal with the current circumstances (including
relevant prospective information)
Information related to asset recoverability and classification and the
amount and classification of liabilities
42. FASB Going Concern Project
Omission of Disclosures
You may accept a compilation engagement whereby substantially all
disclosures are omitted from the financial statements. In such cases.
the following paragraph would be added to the compilation
report: Management has elected to omit substantially all of the
disclosures required by accounting principles generally accepted in the
United States of America. If the omitted disclosures were included in the
financial statements, they might influence the user’s conclusions about
the company's financial position, results of operations, and cash flows.
Accordingly, the financial statements are not designed for those who
are not informed about such matters.
When certain conditions suggest that the client may be unable to
continue as a going concern and the financial statements omit all or
substantially all disclosures, because the user is alerted that
substantially all disclosures have been omitted from the financial
statements (by the paragraph in the compilation report explaining the
omission), going concern disclosures are not required according to AR
§80.
43. FASB Going Concern Project
Omission of Disclosures (continued)
Under this reporting circumstance (substantially all disclosures are
omitted), you cannot emphasize the going concern matter in the
compilation report, because a report cannot introduce new information
that is not actually included in the financial statements. However, if the
financial statements' only disclosures are those related to the going
concern, you may emphasize the going Concern matter in the
compilation report but you are not required to do so.
Under this reporting circumstance (only the going concern matter is
disclosed) the disclosures should not be labeled as "Notes to the
Financial Statements" but, rather, should be described as "Selected
Information- Substantially All Disclosures Required by Generally
Accepted Accounting Principles Are Not Included."
44. FASB Going Concern Project
A client may request that you eliminate a going-concern
emphasis-of-a-matter paragraph from a previously issued
report when the uncertainty has been removed in a
subsequent accounting period.
You should evaluate such a request for a reissued report with
caution.
You should also:
obtain information about the mitigating event or transaction
that prompted the client request for a reissued report and
reassess the going-concern status of the entity at the date
of reissuance in light of conditions and circumstances
existing at that date.
45. Connect with me
Derek Daniel, CPA
Assurance Manager
256.517.1111
derekdaniel@decosimo.com
On LinkedIn:
http://www.linkedin.com/pub/derek-
daniel/5/253/267
Disclaimer:
The contents of this presentation are for informational purposes only. The information is not intended to be a substitute for
professional accounting counsel. Always seek the advice of your accountant or other financial planner with any questions you
may have regarding your financial goals or specific situations.